At its November 8, 2010 regular meeting, the City Council unanimously approved a motion to direct staff to work with adjacent property owners to secure the entire block between 28th and 29th Streets and between the old 5th Avenue North and 6th Avenue North, to serve as the site for a potential new downtown library building, based upon the recommendation of the Library Board of Trustees and the Downtown Library Site Selection Committee.

At that meeting, Library Director Bill Cochran stated that Stockman Bank's Bill Coffey had authorized him to report that the Bank was willing to trade Lots 7-12, Block 49, Fosters Addition, identified as the North Parcel in the attached agreements and exhibit, in exchange for Lots 9-12, Block 53, and land in the vacated railroad right-of-way in the old 5th Avenue North land included in the Library's current parking lot, identified as the South Parcel in the attached agreements and exhibit. The Bank was willing for the trade to be square foot for square foot, without cash being exchanged between the parties.

It was necessary to have the vacated railroad right-of-way surveyed to create a lot representing the balance of the South Parcel, the property that Stockman Bank will obtain in the exchange. At its May 9, 2011 regular meeting, the City Council unanimously approved the subdivision plat creating this lot, identified as Lot 2, in the attached exhibit.

The City Council held a public hearing and approved a resolution to exchange land with Billings Clinic at its May 9 regular meeting, that exchange also to be finalized at this meeting. With the approval of these exchanges, the City will have accomplished the assemblage of the entire block as the site for the potential new downtown library building, per Council direction on November 8, 2010.

Vote required: The Billings Municipal Code Section 22-900 exempts the City from state law requirements at MCA 7-8-4201 regarding the disposal or lease of municipal property. The City Code requires that six (6) members of the Council vote affirmatively in order to transfer City land.

The Council must hold the advertised public hearing and then may:

• Approve by at least six (6) members the resolution exchanging the land;
• Delay action on the resolution to a date certain, potentially postponing continued design of the new Library site and the placement of the Library bond issue on the November 8 ballot at the Council's June 27 meeting; or
• Reject the resolution; requiring the redesign of the proposed Library and the potential of lack of parking even if the current Library facility is retained.

Because both sides in the proposed transaction have agreed to trade square foot for square foot, the land exchange would require no additional cost beyond recording of the documents. The design of the Library is being paid for by an anonymous donor; and the construction costs of a new Library would require public approval in a separate election.

City staff recommends that the public hearing be held and that the resolution approving the property exchange, as well as the attached Exchange Agreement and Parking Agreement between Stockman Bank and the City, each be approved.